Bank confirms closure of branches

The Clydesdale is to close 60 bank branches

Clydesdale Bank has announced the latest batch of branch closures as part of a plan to shut 60 in the next year.

A total of 18 branches in the north east will close by the end of 2005, the bank said.

It said the closures were necessary as internet and telephone banking meant fewer customers were using their local branch services.

The Amicus union, which represents bank workers, said it was "appalled" at the announcement.

The Scottish branches will close along with 40 branches of the Yorkshire Bank in England following an announcement in May by parent company National Australia Bank (NAB).

Recent research undertaken by the bank indicated that on a monthly average 72% of customers didn't use their branch at all Steve Reid Clydesdale Bank

In a statement, Steve Reid, general manager for retail banking at Clydesdale Bank, said: "The decision to close these branches has been an extremely difficult one and we are aware of the potential impact it could have on our customers.

"Recent research undertaken by the bank indicated that on a monthly average 72% of customers didn't use their branch at all while 11% only used the branch once.

"Clydesdale Bank maintains a strong presence with 23 branches in the city of Aberdeen and Aberdeenshire council area and we are, as ever, committed to our customers in these regions."

Branch closures Aberchirder Ballater Cruden Bay Echt Fyvie Inverbervie Kemnay Kintore Laurencekirk New Deer Oldmeldrum Portsoy Rhynie Strathdon Strichen Tarland Tarves Torphins

He added that the 18 Aberdeen and Aberdeenshire branches had only 1,200 customers per branch, compared with an industry average of 9,800.

The bank has sent letters to customers of the affected branches explaining the decision and arrangements for their accounts.

Speaking on Wednesday from Ballater, one of the areas which will lose its local bank, the Scottish National Party's rural affairs spokesman, Richard Lochhead, said: "This is a significant blow for the rural communities who are losing yet another lifeline service.

"It is a pity that a bank that makes considerable profits is withdrawing from so many of our communities, leaving particularly the elderly facing considerable inconvenience.

"This is another illustration of a very worrying trend facing rural Scotland."

Amicus accused the bank of reneging on its 2002 promise to keep 'last bank in town' branches open. It said 15 of the branches will be the last branch in town.

These closures will affect some of the most vulnerable areas of the community Mary Alexander Amicus

It also claimed some customers would have to travel up to 26 miles to access full banking facilities.

Amicus national officer, Mary Alexander, said: "UK banks provide a crucial service to the community and our economic security depends on them.

"These closures will affect some of the most vulnerable areas of the community."

Amicus is calling on NAB to reverse its decision.

Ms Alexander added: "Amicus will be working to ensure that there will be no compulsory redundancies and staff are found suitable alternative employment within the bank."

Big dent

Aberdeenshire Council leader Audrey Findlay said she would be raising the issue with the Convention of Scottish Local Authorities and the Scottish Executive.

"It is something we will fight as a council and will certainly do all we can to keep these branches open," she said.

She said the closures would make a big dent in the rural economy and would inconvenience local people and businesses.

In May, Clydesdale Bank named 14 branches, including ones in Inverkeithing, Tayport and Glasgow, as among the 60 earmarked for closure.

The location of the remaining 28 branches have still to be announced.